TLDR
- Senators from both parties, spearheaded by Sen. Cynthia Lummis (R), delivered correspondence to Treasury Secretary Scott Bessent demanding explicit instructions for state certification under the GENIUS Act.
- The GENIUS Act became law in July 2025 under President Trump, establishing federal oversight for stablecoin operators while permitting state supervision of digital currencies valued at $10 billion or below.
- April proposals from Treasury failed to establish transparent timelines or certification procedures for states seeking regulatory authority.
- Just three digital currencies—Tether, USDC, and USDS—surpass the $10 billion cap requiring federal supervision; remaining stablecoins qualify for state-level governance.
- The senate coalition requests comprehensive written guidelines featuring definitive deadlines, adaptable frameworks, and continuous certification windows for state authorities.
A cross-party coalition of U.S. senators is demanding the Treasury Department establish transparent certification protocols enabling states to supervise stablecoins under recently enacted legislation. The lawmakers contend that existing Treasury recommendations fail to provide states with actionable direction.
State Authority Under the GENIUS Act Framework
The GENIUS Act—formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act—received presidential approval from Donald Trump in July 2025. The legislation creates a comprehensive regulatory structure governing stablecoin issuers nationwide.
According to the statute, digital currency operators maintaining market capitalizations at or below $10 billion may operate under state jurisdiction, provided state regulations substantially align with federal requirements. Currently, merely three stablecoins possess sufficient market size to necessitate federal supervision: Tether, USDC, and USDS (previously called Dai). All remaining stablecoins in circulation would operate under state oversight.
This structure positions state regulation as fundamental to the law’s architecture. However, senators assert Treasury has failed to outline actionable steps for states.
Gaps Identified by Senate Coalition
In Tuesday correspondence, senators headed by Cynthia Lummis (R)—who chairs the Senate Banking Committee’s digital asset subcommittee—addressed Treasury Secretary Scott Bessent. Their letter highlighted that Treasury’s April framework omitted critical details regarding state certification applications.
“Treasury’s proposed principles did not address the timeline and procedural requirements related to state certification,” the letter said.
The senators cautioned that absent explicit instructions, states might interpret the certification opportunity as a limited enrollment period with permanent closure. They emphasized this interpretation could permanently exclude states from regulatory participation.
Co-signatories included Republicans Bill Hagerty, Kevin Cramer, and Pete Ricketts, alongside Democrats Kirsten Gillibrand, Angela Alsobrooks, and Catherine Cortez Masto.
The coalition maintained that congressional architects of the GENIUS Act intended to maintain America’s historic “dual banking system,” wherein federal and state authorities share regulatory jurisdiction over financial entities.
They emphasized that state legislative bodies operate on varying calendars and timeframes. An inflexible, uniform approach would significantly impair participation opportunities for numerous states.
Senators now request Treasury issue formal procedural documentation incorporating transparent application requirements, definitive evaluation schedules, and perpetual certification availability accommodating diverse state legislative cycles.
The public commentary period on Treasury’s initial proposals concluded June 2. Treasury will subsequently develop finalized regulations for Federal Register publication.
This senatorial initiative emerges as parallel cryptocurrency legislation—the Digital Asset Market Clarity Act—advances through Senate consideration.
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